Connecticut Begins Year with 5,300 Jobs

Connecticut employers added 5,300 jobs in January, more than four times as many in all of 2025.

All sectors except financial activities posted gains in January, with trade, transportation, and utilities and professional and business services accounting for almost half the total new jobs.

The January numbers are preliminary and subject to revision, with the April 7 release of the monthly employment report accompanied by cautionary comments from state Department of Labor officials.

“If these numbers hold, it will be a positive start to 2026,” said Labor Commissioner Dante Commissioner Bartolomeo.

“However, we expect some fluctuations in this data and over the coming months as employers in Connecticut and across the U.S. face uncertainty with hiring, tariffs, and energy costs.”

Connecticut payrolls grew by just 1,200 jobs last year, after employers added 14,200 jobs the previous year and 23,000 in 2023.

Labor Force Declines Again

That lackluster growth contrasts with a persistently high number of job openings—more than 76,000 in January.

Connecticut’s unemployment rate rose to 4.5% in January and is now above the national average (4.3%) for the first time since January 2023.

“More concerning for our economic outlook is that the jump in the unemployment rate coincides with the continued decline of the state’s labor force,” said CBIA president and CEO Chris DiPentima.

“The labor force—those working and actively looking for work—fell by 2,500 in January and is down 11,800 (0.6%) year-over-year. 

“That compares with a 0.7% increase in the national labor force over the last 12 months.”

Connecticut’s labor force is now 0.1% below pre-pandemic levels—in stark contrast with the national average, up 3.9% over the same period.

‘Stark Reminder’

At 3.2%, Massachusetts has seen the region’s strongest post-pandemic labor force growth, followed by Rhode Island (3%), Maine (1.8%), New Hampshire (0.4%), Connecticut, and Vermont (-1.7%).

“While this is just a snapshot at the start of the year—and we’ll be looking closely at the data in the coming weeks—this report is a stark reminder of our workforce challenges,” DiPentima said.

“We need to get the people who are on the sidelines back into the workforce.”

CBIA’s Chris DiPentima

“Employers continue to do their part—average weekly wages are up 4% to start the year, outpacing New England’s 2.8% inflation rate.  

“If we want to grow Connecticut’s economy for both the short and long term, we need to get the people who are on the sidelines back into the workforce. 

“It’s critical that policymakers focus on the issues straining employers and making it harder to attract and retain workers, including energy, healthcare, housing, and childcare costs.”

Industry Sectors, Labor Markets

Employment grew in nine of the state’s 10 major industry sectors in January, led by trade, transportation, and utilities with 1,400 net new jobs (0.5%).

Professional and business services added 1,100 jobs (0.5%), followed by manufacturing (800; 0.5%), education and health services (700; 0.2%), construction (500; 0.8%), other services (400; 0.6%), government (300; 0.1%), information (200; 0.7%), and leisure and hospitality (100; 0.1%).

While manufacturing added jobs in January, sector employment is down 1.4% year-over-year, compared with a 0.7% decline nationwide.

Financial activities lost 200 jobs in January (-0.2%), with 12-month sector employment up 0.2%.

Four of the state’s five major labor market areas posted gains in January, led by Hartford-West Hartford-East Hartford, which added 1,500 jobs (0.2%).

Waterbury-Shelton added 700 jobs (0.4%), followed by New Haven (500; 0.2%), and Bridgeport-Stamford-Danbury (400; 0.1%).

Norwich-New London-Willimantic lost 100 jobs (-0.1%).